Director ID – What is it?
Director ID is a new requirement for all company directors, designed to help combat illegal activity by making it easier to trace directors’ relationships with companies. Directors can apply for their director ID from November 2021 on the new Australian Business Registry Services (ABRS).
What is a Director ID?
A director identification number (director ID) is a unique identifier you need to apply for once and will keep forever. It will help prevent the use of false or fraudulent director identities
How Director ID works?
A director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with us.
A director ID:
- starts with 036, which is the 3-digit country code for Australia under International Standard ISO 3166
- ends with an 11-digit number and one ‘check’ digit for error detection.
Directors need to apply for their own director ID. It’s free to apply.
Directors will only ever have one director ID. They’ll keep it forever even if they:
- change companies
- stop being a director
- change their name
- move interstate or overseas.
Why you need a Director ID?
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.
All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help to:
- prevent the use of false or fraudulent director identities
- make it easier for external administrators and regulators to trace directors’ relationships with companies over time
- identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:
- employees miss out on wages, superannuation and entitlements
- suppliers or sub-contractors are left unpaid
- other businesses are put at a competitive disadvantage
- the community misses out on revenue that could have contributed to community services.
Who needs a Director ID?
You need a director ID if you’re an eligible officer of:
- a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
An eligible officer is a person who is appointed as:
- a director
- an alternate director who is acting in that capacity.
How do you apply for a Director ID?
Visit the ABRS website for more information and to read the steps required to apply.
The Heaney Business Group team can assist in advising whether you require an ID however we can’t apply for a director ID on your behalf as you will need to verify your identity.